Real estate as a strategic resource of a company: influence on the core business

The objective of this article is to identify the role of real estate in the core business of a company by investigating the impact of such parameters as added value, costs, and risks during the object life cycle. Many national and foreign researchers have studied the problem. The main definition of real estate, including the description of the object life cycle framework, are represented in works of A.V. Goremykin, I.I. Mazur et al., A.N. Asaul, O.S. Belokrylova, N.F. Vetcher et al. The problem of real estate risk identification, the specificity of real estate costs, and value added to the firm have been studied by V.V. Ivanov, M.G Viering et al., F. Hoffman, A. Lindholm etal., A. Pfnuer. Real estate costs (onetime, fixed, modernizing) are subject to change during the life cycle. The point is that the volume of expenditures increases with each cycle stage while their optimisation potential significantly falls. Being a company's asset and essential cost dimension, real estate adds value to the firm. It can be measurable (cost optimisation, increase of working efficiency) or intangible (image, competitive advantages). The intangible value is difficult to quantify, so, in practice, real estate is rarely regarded as a strategic company's resource. During the object life cycle the company has to face various real property asset risks, which consequently impact on expenditure volume and added value. So, such specific real estate risks affecting the firm require their proper identification and management. Presented indicators (added value, costs, and risks) and their impact during the real estate life cycle provide insight into the role of real property assets in the core business of a company.

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